The demand for Rice Krispies is more elastic than the demand for cereal in general
a. True
b. False
Indicate whether the statement is true or false
True
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Compared to the magnitude of the multiplier in an economy without imports, the multiplier in an identical economy with imports is
A) larger only if exports exceed imports. B) smaller only if imports exceed exports. C) always larger. D) exactly the same. E) always smaller.
When international banks conduct daily trades of different currencies valuing in the millions of dollars
A) they are using the spot market. B) they are using the forward market. C) they are using the futures market. D) they are using the stock markets.
Which of the following is true? a. A nation cannot have a comparative advantage in the production of every good
b. A nation cannot have an absolute advantage in the production of every good. c. A nation can have a comparative advantage in the production of every good, but not an absolute advantage. d. A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage.
If price is less than average total cost, a firm
a. earns an economic profit b. hires additional workers c. moves its factory offshore d. fires the marginal worker e. suffers an economic loss